Apple are going to target this at the web browsing, emailing, book reading market. And I tell you something - they are going to CLEAN UP. It's Game Over for Kindle and Sony eBook reader.
There's no competition unless this device sports e-ink. Nobody whose serious about reading will buy this thing instead of a kindle or e-reader. It's like saying that this pad will be 'game over' for large screen tvs; sure you can watch movies on both, but one will be a miserable experience compared to the other.